Veteran Trader Comments on Uber-Bearish Bitcoin Pattern

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Alex Dovb­nya

Peter Brandt names the key rea­sons why Bit­coin bears could be wrong

Amid Bit­coin’s lethar­gic price action, many chartists have turned bear­ish, point­ing to the loom­ing “head-and-shoul­ders” pat­tern that has appar­ent­ly formed on the cryp­tocur­ren­cy’s one-day chart.

Vet­er­an trad­er Peter Brandt, how­ev­er, does not seem par­tic­u­lar­ly con­cerned by the bear­ish for­ma­tion, nam­ing four rea­sons why it is unlike­ly to play out in a recent tweet.

Brandt also spoke out against the “huge myth” about clas­si­cal chart­ing not work­ing in the nascent cryp­tocur­ren­cy indus­try, claim­ing that they are more applic­a­ble in the cryp­to sphere than in any oth­er asset class.

The leg­endary chartist also made it clear that he does not pre­dict a sharp decline in the Bit­coin price, but he does not rule out that it could indeed happen.

The largest cryp­tocur­ren­cy is strug­gling to get back on track in ear­ly 2022 despite the fact that it has been post­ing decent gains at the begin­ning of every new year since 2018. Dur­ing the first week of 2021, Bit­coin soared as much as 36%. In 2020, it added 13% over the same peri­od of time.

In the mean­time, Bit­coin’s dom­i­nance has now dipped to 39.3%, its low­est lev­el since June 2018.

The mar­ket share of the largest cryp­tocur­ren­cy hit its cur­rent all-time low of 32.8% in Jan­u­ary 2018 dur­ing the peak of the pre­vi­ous bull market.

As report­ed by U.Today, Gold­man Sachs recent­ly pre­dict­ed that the mar­ket cap of Bit­coin could even­tu­al­ly reach $100,000 if it were to eclipse gold as the pre­mier store of value.

Yet many remain bear­ish on Bit­coin due to the Fed­er­al Reserve grad­u­al­ly with­draw­ing its mon­e­tary sup­port that helped to prop up asset prices.

Min­neapo­lis Fed­er­al Reserve Bank Pres­i­dent Neel Kashkari, who is known for his crit­i­cal stance on cryp­to, pre­dict­ed that there would be two inter­est rate hikes this year.



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